Finance as a Barrier to Entry: Bank Competition and Industry Structure in Local U.S. Markets

Finance as a Barrier to Entry: Bank Competition and Industry Structure in Local U.S. Markets

0.00 Avg rating0 Votes
Article ID: iaor2012478
Volume: 61
Issue: 1
Start Page Number: 437
End Page Number: 461
Publication Date: Feb 2006
Journal: The Journal of Finance
Authors: ,
Keywords: competition
Abstract:

This paper tests how competition in local U.S. banking markets affects the market structure of nonfinancial sectors. Theory offers competing hypotheses about how competition ought to influence firm entry and access to bank credit by mature firms. The empirical evidence, however, strongly supports the idea that in markets with concentrated banking, potential entrants face greater difficulty gaining access to credit than in markets in which banking is more competitive.

Reviews

Required fields are marked *. Your email address will not be published.